Chez Eider’s Post

📢 Real Estate Insights: Now is a Prime Time to Buy Apartments! 🏢 Key Takeaways from Hamilton Point Investments: Strategic Acquisitions: In May and June, Hamilton Point Investments (HPI) bought four new properties in Houston for $195 million, totaling 1,174 units. Cost Efficiency: These assets were secured at $166,100 per unit, significantly lower than the $210,000 per unit cost from two years ago. Market Timing: HPI's co-founder Matt Sharp highlights that current prices offer the best buying opportunities since 2010-2011 due to an overbuilt market. Investment Strategy: Focus on nearly brand-new properties directly from developers, purchasing below development cost. Fundraising Success: Continuous interest in apartment investments with strong demand from their investor base, driven by the potential for rent inflation and cash flow stability. Technology Integration: While embracing technology, HPI values human interaction, especially in maintenance, and avoids over-reliance on pricing software to maintain tenant affordability and relationships. 👉 According to Matt Sharp, this favorable buying window is expected to last through the end of the year, making it an excellent time to invest in multifamily properties. Stay tuned for more real estate insights! #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/e7um6mbe

CEO & Managing Partner of The GSH Group, Gideon Pfeffer, recently wrote an article that appeared in Inc. Masters. Click below to read "4 Trends Reshaping the Multifamily Real Estate Market" to understand the trends that will help savvy investors seize emerging opportunities. https://hubs.ly/Q02Fz07N0 #gshrealestate #multifamilyrealestate #conciergerealestate #realestate #alternativeinvestments #investments #incmasters

While we’ve done dozens of development deals in the past few years, we’re excited to announce our first property purchase since February 2020: the impending acquisition of a 300-unit garden-style multifamily property in suburban Dallas.     In today’s Bisnow article, Origin Co-CEO David Scherer discusses the impact of recent high-profile transactions by investment giants like KKR and Blackstone. With stabilized interest rates and strong fundamentals, multifamily demand is set to outpace supply. Read the article here: https://bit.ly/3XIGcFY #realestate #multifamilyinvestments #markettrends 

Leslie Shaver, Multifamily Dive. Blackstone, a New York City-based investment manager, and Apartment Income REIT Corp. (AIR), based in Denver, announced an agreement for Blackstone Real Estate Partners X to acquire all AIR's outstanding common shares for approximately $10 billion, including debt assumption. Blackstone, the world's largest commercial real estate owner, is buying AIR at $39.12 per share, a 25% premium over its closing price on April 5, 2024. AIR's portfolio includes 27,010 units across 76 rental communities, primarily in coastal markets like Miami, Los Angeles, Boston, and Washington, D.C. Blackstone plans to invest over $400 million in these properties for maintenance and improvement, with potential for further investment for growth. Blackstone, with $337 billion of U.S. investor capital under management, has previously acquired apartment firms including American Campus Communities, Preferred Apartment Communities, and Resource REIT. Nadeem Meghji, Blackstone Real Estate's global co-head, highlighted AIR's portfolio as exceptionally high-quality. AIR has operated independently since 2020 after spinning off from Aimco. Terry Considine, Aimco's founder, led AIR post-separation. The deal comes after a period of low merger-and-acquisition activity in the apartment market. MSCI Real Assets notes this transaction could indicate a recovery from COVID-related shocks and potentially inspire more deals in the sector, as public markets have undervalued apartments relative to private valuations. #blackstone #realestateinvestment #apartmentincome #airreit #multifamilyhousing #commercialrealestate #propertyacquisition #coastalmarkets #investmentmanagement #rentalcommunity #realestateportfolio #marketexpansion #propertyimprovement #housingmarket #realassets #sectorrecovery #propertydeals #apartmentsector #institutionalinvestment #marketvaluation

Blackstone Goes Big: $10B Investment in Multifamily Housing! Blackstone is making waves in the multifamily market with its latest move. Acquiring AIR Communities for a whopping $10 billion, it's their biggest bet yet in the sector. 🏘️💸 This all-cash deal showcases Blackstone's confidence in the rental housing market, particularly in coastal hubs like Boston, Los Angeles, and Miami. And with a promise of a $400 million investment to enhance existing properties, they're not just stopping at acquisition - they're planning to further develop apartment living standards! Seems like Blackstone is strategically positioning itself for future success, especially with their capital backing and the anticipation of a slowdown in interest rate hikes. 📈💼 #MultifamilyInvestments #Multifamily

A huge opportunity for serious operators to provide value to investors. In the wake of the pandemic, investors eagerly entered the multifamily real estate sector, drawn by low-interest rates and the essential nature of housing. This led to a rush in floating-rate loans and syndications. However, the scenario quickly changed as interest rates outstripped rental rate increases, causing market distress and a surge in defaults and foreclosures. Experienced investors are now spotting "generational opportunities" in this turmoil. Over $250 billion in private equity is earmarked for distressed real estate, half of which targets multifamily assets. Current and potential distress in this sector is significant, with MSCI reporting over $7.5 billion in distress and a potential for $65.7 billion more. Property values have nosedived, and transaction volumes have decreased sharply. This presents an attractive landscape for well-capitalized investors and private equity firms, who are poised to capitalize on these market changes. For instance, Three Pillars Capital Group strategically acquired the Chateaux Dijon complex in Houston before its loan matured, showcasing savvy investment strategies in this climate. The market's downturn is partly attributed to the influx of inexperienced investors during the boom, many of whom struggled with property management and maintenance. As the market continues to recalibrate, these investors face significant challenges. This dynamic market offers substantial opportunities for astute investors. The coming months will likely witness more foreclosures and acquisitions, as the multifamily real estate sector adjusts to these new realities. 👀 What's your take on these market shifts? Let's discuss below! #RealEstateInvestment #MarketDynamics #InvestmentStrategies #OpportunityAwaits

When people ask me why now is the golden window to buy multifamily? Here are a couple of compelling reasons: · Supply-Demand Discrepancy: A significant disconnect exists between supply and demand, promising continued strong absorption and rental dynamics. · Homeownership Cost Barrier: With homeownership increasingly out of reach for many, there's a growing renter pool, further bolstering the rental market. · Bond Market Dynamics: While bond markets are relatively high (at least for this decade) pricing reflects this state. Anticipated interest rate cuts could tighten spreads, potentially boosting investment values. · Buyer's Market Advantage: Presently, it's a buyer's market, offering less competition and more unique opportunities. · Inflation Hedge: Commercial real estate remains as an attractive option for investors seeking to outpace inflation and build long-term wealth.   As noted by experts from Blackstone, investing during periods of uncertainty can yield immense upside. “You want to be investing into this dislocation because there's a lot of uncertainty. When that uncertainty passes, those investments begin to deliver accelerated return.” While deals may be challenging in today's market, the potential upside CRE is unprecedented. For those with a long-term outlook, there's arguably never been a more exciting time to enter the nipsey hussle marathon than today. https://lnkd.in/e6FfhsH4 #greysteel #cre #blackstone #realestate #multifamily #investing

Institutional money is back! KKR, a prominent private equity investment firm out of New York has reentered the multifamily investment space by acquiring over 5,200 units across the U.S., including Texas and Florida. This move signals renewed confidence in the multifamily sector, as some firms are banking on the dwindling apartment construction starts to boost occupancy and rent growth in the near future. This comes shortly after Blackstone’s $10B purchase of Apartment Income REIT in April. Opportunities are on the horizon, and we will begin to see more as the year progresses. As it is, distressed apartment sales totaled nearly $1B in Q1 alone. https://hubs.li/Q02DKHbM0 Interested in learning more about Club Capital? Join our preferred investor club to get access to our latest investment opportunities and our education blogs and podcasts. https://hubs.li/Q02DKZb80 #PreferredEquity #InvestmentStrategies #CREInvestments

KKR paid $2.1B for over 5.2K units spread across various states, including California, Washington, Florida, Texas, Georgia, North Carolina, Colorado, and New Jersey.They’re banking on dwindling apartment construction leading to lower supply and rising rents by 2026. What do you think about this move? Do you think Multifamily will rebound soon? #investNowCapital #privateequity #multifamily #Passiveinvesting

KKR Acquires $2.1 Billion Multifamily Asset Portfolio from Quarterra Group - KKR has recently executed a significant acquisition, purchasing a multifamily asset portfolio from Quarterra Multifamily for approximately $2.1 billion. This transaction, announced on June 25, 2024, includes 18 Class A properties, enhancing KKR’s real estate footprint considerably. - The portfolio comprises over 5,200 units located in high-demand coastal and Sunbelt regions, including California, Washington, Florida, Texas, Georgia, North Carolina, Colorado, and New Jersey. These properties, a mix of mid-rise and high-rise buildings, are strategically situated near major urban centers, offering high construction quality, modern amenities, and efficient resource utilization. - Justin Pattner, KKR’s Partner and Head of Real Estate Equity in the Americas, emphasized the opportune timing of this acquisition, as the real estate market rebounds following two years of disruptions. Pattner highlighted KKR’s ability to leverage its extensive network, local market knowledge, and robust capital resources to secure high-quality assets. - The acquisition is poised to immediately bolster KKR’s portfolio, capitalizing on the robust fundamentals in the targeted regions. Daniel Rudin, Managing Director at KKR, noted the expected deceleration in new supply over the coming years, which will likely enhance the portfolio’s value proposition. The anticipated $25 million in annual cost synergies from the integration of these properties will further support KKR’s financial performance. - KKR’s approach to managing these assets involves collaboration with leading multifamily operators such as Carter-Haston, MG Properties, and Dalan Real Estate, ensuring optimal asset management and operational efficiency. The investment was facilitated through capital accounts advised by KKR, maintaining a disciplined approach to portfolio expansion. - Legal advisement for KKR was provided by Gibson Dunn, while Quarterra Group was counseled by Troutman Pepper and JLL. - This acquisition underscores KKR’s aggressive expansion in the real estate sector, focusing on high-growth markets and quality assets. The deal only strengthens KKR’s position in the multifamily housing market. - The timing and scale of this acquisition are noteworthy, reflecting confidence in the long-term growth prospects of the multifamily sector. #kkr #realestate #multifamilyinvestment #quarterramultifamily #realestateacquisition #investmentstrategy #highgrowthmarkets #realestateportfolio #operationalexcellence #financialmarkets